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Financial Agreement

What is the Financial Contract Number?

Do you know what a financial contract is? If not, then read this blog to gain ideas regarding financial contract and how they are beneficial. 

A financial contract should be something that helps keep the funding process straightforward. Discover more about finance contracts or agreements in this blog. A loan agreement among both participants, also recognised as a finance contract, comes with several benefits to the shareholders. Even in the case of a dispute, writing a good and flawless finance agreement can provide the parties involved with security and efficiency. It facilitates one in preventing misapprehensions or conflicts related to borrowing or lending. 

At times, these agreements are also termed smart contracts. Basically, a smart contract is a set of commitments agreed upon by stakeholders which are automatically conducted when specific criteria are met. The term “smart contract” refers to a wide range of instances. 

Let’s learn more about it in detail below. 

What Exactly Are These Agreements All About?

A personal loan or financial contract, which is a legally binding agreement, can be conscripted with an official lender, such as a bank or credit union, or in a more informal situation, such as with a friend who is lending you money. It basically says (among other things):

  • How much money are you borrowing;
  • When you assure to repay it;
  • Depending on the scenario, any fees and/or penalties you promised to pay (such as if you prepay the debt or become delinquent).

A finance contract between two or more parties is generally written under diverse scenarios. Presume that a lender draughts an agreement with the company to build a restaurant. The organisation can then make use of the proceeds from customers to repay the debt, as stipulated in the checklist of finance contract or agreement. However, the process of developing financial contract is indeed complex. It requires the consideration of multiple factors. Everything is covered extensively in the below-mentioned sections.

Why Such an Agreement is Beneficial?

It’s a good idea to propose an official agreement when loaning money to family or close friends to prevent misunderstandings that could impact your relationship. While it may seem t to be too much for small amounts that can be paid off with your next paycheck, you must consider doing the documentation for larger private or unsecured loans that will take more time to repay.

What Should a Financial Contract Include?

Although each finance pact will still have distinct divisions based on various agreements, the specifics mentioned below will be predominant in a classic finance agreement. 

The following information should be included in a personal financial contract:

  • The lender’s and borrower’s names and addresses;
  • If applicable, information about the loan cosigner;
  • If applicable, interest rate;
  • If applicable, annual percentage rate (APR);
  • Amount borrowed;
  • Date the loan was taken;
  • Date of expected repayment;
  • Payment terms, like whether the loan will be compensated on demand, in instalments, or in one lump sum, as well as payment amounts and dates;
  • If applicable, penalties for paying off the loan early (also known as penalty fees) Modes of payment, such as a check or cash;
  • Payment approvals, including those required for fully automated withdrawals from a bank account;
  • Information on how conflicts will be taken into account and/or settled;
  • Penalties and repercussions for late or non-payment;
  • Options for modifying the loan’s provisions;
  • Signatures of both borrower and the lender, and the date of agreeing on the contract.
Craft the perfect finance agreement. Seek our expert assistance here:

Documents Needed to Draft a Financial Contract

  • Form of Application: Complete the petition for a loan form and include one passport-sized photograph.
  • Identity proof for the applicant: A copy of passport, voter ID, PAN card, driver’s license, and MAPIN card is required.
  • POA (Proof of Address): Telephone bills, a ration card, a rental contract, electricity bills, a business licence, a passport, and a receipt of sales tax.
  • A copy of a passport, a voter’s ID, or a PAN card, are all adequate forms of proof of age.
  • Financial records: A document outlining IT recoveries over the preceding two years, and the most recent 6-month bank records and profit and loss statements, along with an audited balance sheet by a Chartered Accountant for the previous two years.

How to Create the Perfect Financial Contract

While financial firms have been using frameworks to generate personal loan contracts, if you’re going to borrow from some other person, you’ll have to generate your own.

You may feel the need to hire an attorney to guide you through the process, based on how complex your individual circumstances are. The do-it-yourself strategy, on the other hand, is completely acceptable and legally sound. Once you’ve attained an agreement on the terms, you may like to have the lending contract signed and sealed or have a 3rd party act as testimony during the signing.

It’s a smart option to get together not only to fix the flaws but also to devise a backup plan in the case of a catastrophe. This can include responses including:

  • What happens if the borrower has been unable to make a payment?
  • What charges and fines are you both prepared to accept?
  • What happens if the borrower has now become incapacitated or ends up dead?

How Can You Get Help from Vakilsearch?

Vakilsearch is the right option for those looking to write a finance agreement. We offer a completely legal finance contract that is beneficial to all parties. Contact us right away and let Vakilsearch’s team take over and offer you the right format of a financial contract. The best thing about us is that you will get two free sessions of reiteration to incorporate the document’s modifications.


There are numerous free or low-cost templates available online to assist you in drafting a personal loan agreement. While not all personal loan agreement templates will be applicable to your situation, they can serve as a guide and ensure you don’t overlook important details. However, as we have mentioned above, if you wish to keep all the hassles at bay while creating a financial contract, getting in touch with the experts of Vakilsearch would be the best thing to do. 


Is 18601207777 a toll-free number?

No, ICICI’s customer backup customer care number - 18601207777 is not a toll-free number.

How do I check my loan status?

To check your loan status, you should contact the lender directly. For example, if you have a loan with HDFC, you can check your loan status by logging into the HDFC portal.

How do I check my DMI loan details?

You can check your DMI loan details by contacting DMI Finance customer care at +91 11 4120 4444 or

What is the phone number for HD BF?

You can reach out to HDB Financial Services for any query/complaint by calling them at : +91 44 4298 4541 (10.00 am to 6.00 pm, Monday-Friday & 10.00 am to 2.00 pm on 1st & 2nd Saturdays).

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